Thoughts on rebalancing my portfolio [Panama]

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Chimarru
Posts: 1
Joined: Mon Jun 22, 2020 1:05 am

Thoughts on rebalancing my portfolio [Panama]

Post by Chimarru »

Hello,

I started this portfolio on October 2021

Starting allocation:
23.5% - iShares Core S&P 500 UCITS ETF USD Acc (CSPX)
15.5% - ProShares UltraPro S&P500 (UPRO)
36.5% - iShares $ Treasury Bond 20+yr UCITS ETF USD Acc (DTLA)
24.5% - Direxion Daily 20+ Year Treasury Bull 3X Shares ETF (TMF)

Current allocation:
32.19% - iShares Core S&P 500 UCITS ETF USD Acc (CSPX)
12.4% - ProShares UltraPro S&P500 (UPRO)
42.99% - iShares $ Treasury Bond 20+yr UCITS ETF USD Acc (DTLA)
12.68% - Direxion Daily 20+ Year Treasury Bull 3X Shares ETF (TMF)

I’m a Non-US investor, investing from Panama. Originally, I intended to maintain an AA of 70 Stocks/110 LTT with no additional contributions and rebalance annually. So far, the portfolio has been mostly on a downtrend since the start date, but I plan on letting it run for 15+ years.

Right now, I’m at 80 Stocks/100 LTT, I was planning on rebalancing at the end of October but given the current economic conditions I’m not sure if I should wait a little longer to rebalance into my LTTs portion.

Question: should I stick to my scheduled rebalancing or any thoughts on doing anything different.
Laurizas
Posts: 439
Joined: Mon Dec 31, 2018 4:44 am
Location: Lithuania

Re: Thoughts on rebalancing my portfolio [Panama]

Post by Laurizas »

If I remember correctly from Hedfundie's thread, historically the best rebalance of UPRO and TMF was quarterly.

It is hard to say, what you gain or lose by waiting longer.
TedSwippet
Posts: 4395
Joined: Mon Jun 04, 2007 4:19 pm
Location: UK

Re: Thoughts on rebalancing my portfolio [Panama]

Post by TedSwippet »

Welcome to the forum.
Chimarru wrote: Thu Sep 22, 2022 1:31 pm I’m a Non-US investor, investing from Panama. ...
Just a heads-up. Some of your holdings are US domiciled ETFs (specifically, UPRO and TMF). Panama has no US tax treaties. Because of this, you may be overpaying US tax on any dividends from these particular holdings, and you also potentially risk confiscatory US estate tax on what you hold in them above just $60k. More in this wiki page:

Nonresident alien taxation - Bogleheads
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